Supreme Court Sets Aside Civil Imprisonment for Contempt of Injunction in Trademark Passing Off Suit — Mere Disobedience Not Enough, Willful Disobedience Must Be Proved. The Court held that under Order XXXIX Rule 2A CPC, contempt requires willful disobedience, and the appellant's explanation for non-removal of a hoarding was acceptable, thus no willful disobedience was established.

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Case Note & Summary

The appeal arose from a suit for permanent injunction filed by Mambally's Bakery against U.C. Surendranath, alleging passing off by using the trademark 'Mambally's Bakery'. The Trial Court granted an interim injunction on 04.11.2015, served on the appellant on 09.11.2015. An advocate Commissioner inspected the appellant's shop on 07.11.2015 (before service) and found products bearing the trademark and a hoarding. On a second inspection on 20.11.2015, the Commissioner noted that products were sold without wrappers/labels, but the hoarding remained. The Trial Court found willful disobedience and sentenced the appellant to one week civil imprisonment under Order XXXIX Rule 2A CPC. The High Court affirmed. The Supreme Court allowed the appeal, holding that the first inspection predated service, and the appellant's explanation for not removing the hoarding (height of 13 feet, disability, labour scarcity) was acceptable. The Court emphasized that contempt under Order XXXIX Rule 2A requires willful disobedience, not mere disobedience, and the quasi-criminal standard of proof was not met. The sentence was set aside, and the suit was directed to proceed expeditiously.

Headnote

A) Civil Procedure - Contempt of Court - Order XXXIX Rule 2A CPC - Willful Disobedience - The court held that for finding a person guilty under Order XXXIX Rule 2A CPC, there must be not mere disobedience but willful disobedience. The allegation being quasi-criminal in nature must be proved to the satisfaction of the court that the disobedience was willful. In the present case, the Commissioner's first inspection occurred before service of the interim order, and on the second inspection, the appellant had stopped using the trademark on products, though the hoarding remained. The appellant's explanation for non-removal of the hoarding due to disability and height was found acceptable. Hence, no willful disobedience was established. (Paras 5-8)

B) Trademark Law - Passing Off - Interim Injunction - Compliance - The court noted that the appellant complied with the injunction by ceasing to use the respondent's trademark on products after service of the order. The continued display of a hoarding, without evidence of willful defiance, did not justify civil imprisonment. (Paras 6-7)

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Issue of Consideration

Whether the appellant's failure to remove a hoarding and prior use of the respondent's trademark constituted 'willful disobedience' under Order XXXIX Rule 2A of the Code of Civil Procedure, 1908, warranting civil imprisonment.

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Final Decision

The Supreme Court allowed the appeal, set aside the impugned order of the High Court and the Trial Court's sentence of one week civil imprisonment. The suit (O.S. No. 1 of 2015) was directed to proceed expeditiously. No order as to costs.

Law Points

  • Order XXXIX Rule 2A CPC requires willful disobedience
  • not mere disobedience
  • contempt proceedings are quasi-criminal and standard of proof is higher
  • explanation for non-compliance must be considered before imposing sentence
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Case Details

2019 LawText (SC) (7) 9

Civil Appeal No. 5775 of 2019 (Arising out of SLP(C) No. 2910 of 2016)

2019-07-22

R. Banumathi, A.S. Bopanna

P.V. Surendranath (for appellant), P.B. Suresh (for respondent)

U.C. Surendranath

Mambally's Bakery

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Nature of Litigation

Civil appeal against order affirming civil imprisonment for alleged contempt of interim injunction in a trademark passing off suit.

Remedy Sought

Appellant sought setting aside of the order sentencing him to one week civil imprisonment under Order XXXIX Rule 2A CPC.

Filing Reason

Appellant was found guilty of willful disobedience of an interim injunction restraining him from using the respondent's trademark 'Mambally's Bakery'.

Previous Decisions

Trial Court sentenced appellant to one week civil imprisonment; High Court affirmed in FAO No. 2 of 2016.

Issues

Whether the appellant's conduct constituted 'willful disobedience' under Order XXXIX Rule 2A CPC. Whether the sentence of civil imprisonment was justified in the absence of willful disobedience.

Submissions/Arguments

Appellant argued that the first inspection occurred before service of the interim order, and on the second inspection, products were sold without wrappers; the hoarding could not be removed due to height and appellant's disability. Respondent contended that the appellant continued to display the hoarding and had used the trademark, constituting willful disobedience.

Ratio Decidendi

For finding a person guilty of willful disobedience under Order XXXIX Rule 2A CPC, there must be not mere disobedience but willful disobedience. The allegation being quasi-criminal in nature must be proved to the satisfaction of the court that the disobedience was willful. In this case, the appellant's explanation for non-removal of the hoarding was acceptable, and the use of the trademark before service of the order did not constitute contempt.

Judgment Excerpts

For finding a person guilty of willful disobedience of the order under XXXIX Rule 2A C.P.C. there has to be not mere 'disobedience' but it should be a 'willful disobedience'. The allegation of willful disobedience being in the nature of criminal liability, the same has to be proved to the satisfaction of the court that the disobedience was not mere 'disobedience' but a 'willful disobedience'.

Procedural History

Trial Court granted interim injunction on 04.11.2015, served on 09.11.2015. Commissioner inspected on 07.11.2015 (before service) and 20.11.2015. Trial Court found willful disobedience and sentenced appellant to one week civil imprisonment. Appellant appealed to High Court, which affirmed on 05.01.2016. Appellant then filed SLP before Supreme Court, which was converted to Civil Appeal No. 5775 of 2019.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXIX Rule 2A
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